How do you know if your ISA was Mis-sold?
There tends to be five broad explanations as to why most insurance products including an ISA are mis-sold.
- The terms and conditions weren’t explained to you - In that the adviser did not sufficiently explain the product, the terms, risks and appropriateness of the product for your own financial situation.
- The adviser was not as experienced as they suggested they were - Investments can have serious financial consequences incorrectly invested. Experience allows advisers with the knowledge to correctly suggest certain products.
- Fees and charges were not explained - The financial adviser receives money for any advice and these fees and charges were not explained fully.
- The risk of the product was not explained - All investments carry a risk and your financial situation and adversity to risk must be established.
- Products in place were ignored - Many purchasers of investments like ISA’s have other insurance products and these must be taken into consideration when advising. The effects of cancelling products or changing them to new products must be looked at carefully and explained thoroughly.
Were you Mis-sold an ISA?
If the points above, namely the advice concerning the purchase of the ISA were not dealt with correctly. In that if your financial position and that of your family life was not taking into consideration, along with your own personal comfort and adversity to risk and any other products you had in place at the time were not assessed fully the product could well have been mis-sold.
Can you claim Compensation for a Mis sold ISA?
If you have been mis-sold an ISA you can certainly look at obtaining compensation to address any losses or receive compensation for poor advice that has caused you loss. The degree of financial loss as a result of the mis-sale or inappropriate advice will be considered and dealt with including compensatory interest.
What does mis-sold mean?
Mis-selling has become a byword in recent years following the scandal of the mis-selling of payment protection insurance. Financial institutions and the financial advisers that either work directly or indirectly for them have to mean for certain standards when promoting products and services. They are all governed and have clear legal requirements to follow set out by the Financial Conduct Authority.
Those products must be correct and appropriate for the financial situation both for you as an individual or as a family unit. Taking into consideration your financial position at the time and the future financial position that you are likely to be in both in the short and medium term and in some cases in relation to long term commitments the long-term.
How do I claim a mis sold investment?
If you have been mis-sold a financial product it is important to –
- Collate information that you have in order to make a case and explain the concerns the have.
- Formalise a complaint to the adviser or provider of the product which you believe was mis-sold.
- If this is unsuccessful prepare a full report to be submitted to the financial ombudsman service.